NEW YORK, May 29, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Chelsea Therapeutics International, Ltd. ("Chelsea" or the "Company") (Nasdaq: CHTP).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Chelsea's Northera (droxidopa) product, an orally-active synthetic precursor of norepinephrine being developed for the treatment of symptomatic neurogenic orthostatic hypotension, would not receive approval from the U.S. Food and Drug Administration; and (2) the Company's numerous statements regarding the safety and efficacy of the product, as well as reportedly positive results from Northera's clinical trials, were materially false and misleading.
On February 13, 2012, Chelsea disclosed that the Food and Drug Administration ("FDA") had raised questions regarding the efficacy, size and duration of the Company's clinical trials for the drug Northera. Furthermore, the FDA indicated that three deaths were potentially related to the drug's trials. In the aftermath of these disclosures, Chelsea's stock price declined by more than 37 %. Then on March 28, 2012, the Company announced that its New Drug Application for Northera was rejected by the FDA. Upon this news, Chelsea shares fell more than 28%, to close at $2.62 per share on March 29, 2012.
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If you purchased Chelsea securities between November 3, 2008 and March 28, 2012 and would like to discuss your legal rights, visit www.faruqilaw.com/CHTP. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org or email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Chelsea's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
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New York, NY 10017
Attn: Richard Gonnello, Esq.
Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
|SOURCE Faruqi & Faruqi, LLP|
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